LIC's Dhan Sanchay policy is a non-linked, individual, savings, and life insurance policy Plan. It will provide financial support to the family in case of the unfortunate death of the investor during the policy term. Additionally, it provides guaranteed, assured income during the Payout Period from the date of policy maturity.
Eligibility Criteria and Benefits options - Dhan Sanchay Plan
The minimum entry age of the LIC Dhan Sanchay plan is 3 years. The maximum entry age for option A and option B is 50 Years, for option C it is 65 Years, while for option D it is 40 Years. The minimum maturity age will be 18 years. The maximum maturity age for option A and option B is 65 Years, for option C it will be 80 Years, and option D it will be 55 Years.
An investor can take the benefits in four different options. There will be two options under the regular or limited premium payment method and two options under the single premium paying method. Under the Regular or Limited premium payment method you can have option A as Level Income Benefit, and option B as Increasing Income Benefit. Under the Single premium payment method, you can have option C as Single Premium Level Income Benefit, and option D as Single Premium enhanced cover with Level Income Benefit. You need to choose the option at the time of investment, which you cannot change later.
Policy Term and Premium Paying Term - Dhan Sanchay Plan
The policy term for option A and option B is 10 years and 15 years, for option C and option D it will be 5, 10, and 15 years, as per LIC. The premium paying term for the Regular or Limited premium will be 5 and 10 years for 10 years policy term, while it will be 5, 10, and 15 years for 15 years policy term.
You will also have different payout periods. For the payout period option A & option B it will be equal to the premium paying term, and for option C and option D it will be equal to the policy term.
Your minimum annualized or single premium under option A and option B will be Rs. 30,000, and under option C and option D it will be Rs. 2,00,000. There is no limit on the maximum premium. The minimum sum assured on death under option A and option B will be Rs. 3,30,000, under Option C it will be Rs. 2,50,000, and under option D it will be Rs. 22,00,000, for the investors.
Death benefits and maturity benefits
The death benefit will be the "Sum Assured on Death"; where "Sum Assured on Death" for various options can vary. For option A and option B, the Sum Assured on Death will be higher of 11 times of the "Annualized Premium"; or "Sum Assured on Maturity"; or 105% of total premiums paid upto the date of death. The total premiums paid will indicate the total of all the premiums received, excluding any extra premium, any rider premium, and taxes. For option C, the "Sum Assured on Death" will be higher by 1.25 times of the "Single Premium" or the "Sum Assured on Maturity". For option D, the "Sum Assured on Death" will be 11 times of the "Single Premium".
You can choose to take the death benefits in installments. For Monthly installment, the minimum amount will be Rs. 5,000, for quarterly installment the minimum amount will be Rs. 15,000, for a half-yearly installment the minimum amount will be Rs. 25,000, and for yearly installments the minimum amount will be Rs. 50,000.
Sum Assured on Maturity shall be equal to Annualized Premium or Single-Premium, as applicable, multiplied by the Maturity Benefit Multiplier. After the policy maturity, maturity benefit will be paid in the form of Guaranteed Income Benefit and Guaranteed Terminal Benefit. There will be an option to take the maturity benefits in lump-sum, during the minority of the Life Assured or by the Life Assured aged 18 years and above, at least 3 months before the due date of maturity under an in-force as well as paid-up policy, as LIC informs.
Policy surrender and grace period
The Regular or Limited Premium payment (that is option A and option B) can be surrendered by the policyholder at any time during the policy term provided at least 2 full years' premiums have been paid. Single-Premium payment (that is option C and option D) can be surrendered by the Policyholder at any time during the policy term, LIC stated.
The LIC Dhan Sanchay also offers a grace period. LIC informs, "A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First Unpaid Premium. During this period, the policy shall be considered in force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the policy lapses."